The Houston-based company reported quarterly output of nearly 1.7 million barrels of oil equivalent, or 18,784 barrels of oil equivalent per day. About 72 percent of its production was oil, while the remainder of the company’s production was natural gas and natural gas liquids.

Tony Sanchez III is the president and CEO of Sanchez Energy Corp. in Houston.

Courtesy Sanchez Energy

“Our ability to more than triple our first quarter production year-over-year reflects positively on both the quality of our assets and the efficiency of our operations,” says Tony Sanchez III, the company’s president and chief executive officer. “Moving forward, we will continue to leverage our proprietary systems and drilling processes to drive down costs per well, reduce drill time and enhance our capital efficiencies.”

Sanchez’s focus on improved processes has slashed its drill time by 40 percent and doubled the number of hydraulic fracturing stages pumped daily in the Eagle Ford, officials say. The company also decreased total well costs by 30 percent across its Eagle Ford operations.

Sanchez currently has production of around 21,000 barrels of oil per day with 13 gross wells in various stages of completion.

The company announced capital expenditures of $650 million to $700 million this year, all but 5 percent slated for drilling and completing 70 new wells. It will spend 90 percent of its drilling and completion capital in the South Texas energy play and the rest in the Tuscaloosa Marine Shale in Louisiana and Mississippi.

Last year, it spent $220 million in cash to buy additional Eagle Ford assets in McMullen County consisting of 11 million barrels of oil equivalents in proved reserves and 2,000 barrels of oil equivalents per day.

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